Year ends well for Welspun bagging new order
DSIJ Intelligence / 31 Dec 2015
Welspun Enterprises (WEL) has bagged an order on the last day of the year with package I of the Delhi-Meerut Expressway project to be developed through Hybrid Annuity Model (HAM) from the National Highways Authority of India (NHAI) . HAM is a mix of EPC and BOT formats, with government and private enterprise sharing the total project cost in the ratio of 40:60, respectively.
Welspun Enterprises (WEL) has bagged an order on the last day of the year with package I of the Delhi-Meerut Expressway project to be developed through Hybrid Annuity Model (HAM) from the National Highways Authority of India (NHAI) . HAM is a mix of EPC and BOT formats, with government and private enterprise sharing the total project cost in the ratio of 40:60, respectively.
WEL formerly known as Welspun Projects, operates through the infrastructure development segment. The company has made investment in renewable energy, and oil and gas exploration sectors. It has operational capacities in solar energy in the country of close to 400 megawatt. WEL also has operational wind capacity of around 50 megawatt. The company has interest in various oil and gas exploration blocks in India and abroad.
WEL will develope Package I of 8.716 km length highway under HAM. The company opted the project at bid project cost of Rs 841.5 crore for about 15 years period. During the construction of highway, 40 per cent of bid project cost will be funded by NHAI and remaining 60 per cent will be arranged by Concessionaire. During the operation period, NHAI will pay concessionaire 60 per cent in semi-annual payments and further payment will be with an interest cost. NHAI will also pay concessionaire annualised operations and maintenance cost of Rs 3.95 crore for maintenance of the project road during the period.
The awarded project will focus and work entirely within the city of Delhi. It consists of an existing six lane road in the centre and two four lane road on either side making it 14 lanes in all. The construction of the project is to be completed in 2.5 years after an appointed date.
WEL has a gross debt of Rs 271 crore and cash equivalent of Rs 780 crore as of Q2FY16. The company has seven BOT projects which comprises of five in the Road, one in Water and one is a Bus Terminal. Its residual order book of EPC contracts works out to Rs 70 crores.
The share price of WEL increased by 7.2 per cent on bourses in early trades and is trading at Rs 64 on intraday basis.
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